Toy Time Products is considering producing toy action figures and sandbox toys. The products require different specialized machines, each costing $1.1 million. Each machine has a five-year life and zero residual value. The two products have different patterns of predicted net cash inflows. Click the icon to view the data.) Calculate the toy action figure project's ARR. If the toy action figure project had a residual value of $125,000, would the ARR change? Explain and recalculate if necessary. Does this investment pass Toy Time's ARR screening rule? First, enter the formula, then compute the ARR of the toy action figure project. (Enter amounts in dollars, not millions. Enter your answer as a percent rounded to two decimal places.) Accounting Average annual operating income from asset Initial investment rate of return 1 $ 1,100,000 10.36 % 1 project's A this invest i Data Table - the AR ompute the s. Enter Annual Net Cash Inflows Year Toy action Sandbox toy g income fol project 1 figure project $ 335,750 $ 335,750 500,000 2 360,000 ---- 3 - - - 335,750 325,000 4 ... 335,750 335,750 280,000 50,000 5 ... $ 1,678,750 $ 1,515,000 Total Toy Time will consider making capital investments only if the payback period of the project is less than 3.5 years and the ARR exceeds 8%. Print Done